Crypto exchange and derivatives platform OKEx recently integrated with scalability solution Polygon. Designed to meet the demand for better user experience, cost-efficient, and faster transactions, the integration is poised to bring improvement to the exchange. In light of this announcement, we talked with OKEx CEO, Jay Hao. This is what he told us.
Q: Why did you decide to integrate Polygon? And how will OKEx platform operate with it?
A: Integrating Polygon was definitely out of thought for our users. With one fewer layer, users can enjoy a cheaper yet quicker withdrawal experience from our exchange to Polygon. Throughout the launch, we’ve seen users actively making inquiries about it and testing it out.
Q: How will OKEx and your users benefit from the integration with Polygon?
A: With the former process, users needed to withdraw funds from OKEx to a Layer-1 wallet, then from the wallet to the Polygon PoS network — with two instances of fees being charged (i.e., the exchange withdrawal fee and the contract fee of the wallet).
With the integration of Polygon, OKEx users can now transfer funds directly to the Polygon PoS network, with the withdrawal fee waived by OKEx.
Q: This integration simplifies the transaction process on OKEx but will reduce the fees perceived by the exchange. Could this be detrimental to your business model in the long term?
A: We do not profit from withdrawal fees, we merely take fees and pay to confirm the transaction on behalf of the users. The same thing goes for this Polygon integration as well. In fact, by removing the extra withdrawal step, it becomes a win-win for both ourselves and our customers.
Q: What are some of Polygon’s features that OKEx users will be able to leverage?
A: Polygon is one of the most efficient full-stack scaling solutions for Ethereum, so the transactions on Polygon are fast and cheap. And Polygon has already integrated with most mainstream DeFi applications. We would love to give our customers access to all these great products and financial opportunities.
Q: Can you provide some insight on how you choose which projects integrate with? What’s your number one priority in those cases?
A: We need to integrate with scaling solutions to open up more financial opportunities for our customers. We look at the security of the network, the maturity of the technical infrastructure, and the richness of the applications on the network. These three are the most important factors.
Q: Ethereum hosts some of the most popular DeFi dApps, but its transaction fees are a concern for the users. How will second-layer solutions help address this issue? Do you think they will have a meaningful impact?
A: We agree that high gas fees prevent DApps from growing on Ethereum. Most Layer-2 solutions leverage a separate network or a sidechain to handle the transactions to avoid the congestion, while also inheriting the same level of security from Layer 1. When combined, it helps to address the issue. We hope this new technology will actually resolve some of the pain points in blockchain development, and our customers will benefit from that continuous development.
Q: Polygon has been announcing partnerships with dApps, decentralized exchanges, DeFi protocols, and others. What makes the integration between OKEx and Polygon unique?
A: This is an integration between Polygon and a centralized exchange. Users can enjoy all the conveniences of OKEx as well as Polygon’s rich applications in all these partnerships.
Q: Ethereum is in the process of developing its PoS blockchain, Eth 2.0. It will be faster, more scalable, cost-efficient, and with an ecosystem full of financial dApps. In that context, what do you think the future will be like for platforms like OKEx? Do you think DeFi and exchanges will co-exist?
A: Per I shared my view on Twitter before, yes, I believe DeFi and exchanges will coexist seamlessly when it comes to offering financial opportunities to the wider community — and at the same time, play with their own strengths to serve the customers.
Q: Are you planning on integrating OKEx with other L2 platforms, like Optimism?
A: Yes, we plan to integrate with more L2 platforms, depending on how well each could serve our users. Plans have been rolling out, we’ve announced the support of direct deposits and withdrawals onto Ethereum scaling solution Arbitrum last month.
Q: Any final comments on your cooperation with Polygon?
A: We look forward to further cooperation, but for now we would like to closely monitor the integration we just had.